Waltham, MA, May 22, 2024—A recent study from the Workers Compensation Research Institute (WCRI) found that overall costs per workers’ compensation claim in Michigan were the lowest of the 17-state study group, at an average cost of $31,735 per claim.

“Michigan was lower for all key components of total costs per claim—indemnity, medical, and benefit delivery expenses,” said Sebastian Negrusa, vice president of research of WCRI. “Several system features, including a culture of return to work, processes for terminating temporary disability benefits, and the temporary disability benefit calculation, likely contributed to low indemnity benefits.”

The study, CompScope™ Benchmarks for Michigan, 24th Edition, provides ongoing annual monitoring of how indemnity benefits, medical payments, and benefit delivery expenses in Michigan compare with 16 other study states and how they have changed over time. The following are some other findings from the study:

• Michigan’s approach to compensating temporary disability leads to slightly higher benefit rates among lower-wage workers and lower benefit rates among higher-wage workers.
• Total costs per claim grew 7 percent in the most recent year of the study period, with increases in all three components contributing to that result.

The analysis in this edition covers injury dates from 2017 to 2022 and payments through the end of March 2023. For some key metrics, we use data for injuries before 2017 to provide historical context. The 16 other states in the study are Arkansas, California, Florida, Illinois, Indiana, Iowa, Louisiana, Massachusetts, Minnesota, New Jersey, North Carolina, Pennsylvania, Tennessee, Texas, Virginia, and Wisconsin. The report was authored by William Monnin-Browder with the assistance of Terence Cawley.

ABOUT WCRI

The Workers Compensation Research Institute (WCRI) is an independent, not-for-profit research organization based in Waltham, MA. Organized in late 1983, the Institute does not take positions on the issues it researches; rather, it provides information obtained through studies and data collection efforts, which conform to recognized scientific methods. Objectivity is further ensured through rigorous, unbiased peer review procedures. WCRI's diverse membership includes employers; insurers; governmental entities; managed care companies; health care providers; insurance regulators; labor organizations; and state administrative agencies in the U.S., Canada, Australia, and New Zealand.

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